Could 2024 mark a turning point for would-be homebuyers?

Market conditions could see a big shift in urban areas

Could 2024 mark a turning point for would-be homebuyers?

The Canadian real estate landscape is poised to favour prospective home buyers in 2024 as urban areas nationwide steadily veer towards becoming buyer’s markets, according to polling by online marketplace Zolo.

This will be further impelled by potential cuts in mortgage rates throughout the year, although not to the historically low levels seen during the pandemic.

Real estate investor and podcast host Daniel Foch said that there will be a clear silver lining for buyers despite the elevated-rate environment.

“2024 will likely prove to be one of the best times in the last five years to purchase a property in Canada,” Foch told Zolo. “If buyers can afford today’s rates, they’ll be in a good financial position at renewal when those rates eventually drop.”

Veteran broker and author Angela Calla told Zolo that the likelihood of mid-year rate cuts rises if inflation aligns with the central bank’s 2% target rate.

Given this context, Calla suggested homeowners should explore various rate options rather than hastily accepting the initial renewal offer from their lenders.

On the seller side, Zolo president and COO Mustafa Abbasi is anticipating a buyer’s market until spring, with a possibility of market balance depending on a subsequent decline in interest rates.

Abbasi said that in this environment, sellers should take the opportunity to maintain their properties in optimal condition and strategically price them slightly below prevailing market value.